The Marketing Reality
Economic momentum is one of the main drivers of revenue, but the recent decline in the economic growth rate has exposed marketing weakness. In fact, the lack of real sales growth is often cited as the biggest challenge among businesses.
In the face of this "new economy" one thing never changes ... the expectations for improved results. The bar is continually being raised for increased sales and profit, which becomes more difficult with increased competition. The marketing return on investment suffers because, the lack of a differentiated strategy creates a business environment that is overly focused on price and/or availability rather than well conceived and executed business plans. |
Case Studies
The Return on investment for Coca-Cola Fountain had fallen below the cost of capital as volume per outlet had not kept pace with historic placement programs. In fact, equipment placement programs had not changed for nearly 50 years.
|
CIBA-Vision’s product line suffered from a lack of differentiation among targeted providers. Also, eye disease management was not a priority for HMO’s. As a result, the brands were excluded from profitable formularies.
|
The Great White brand was” reinvented” during the late 90s in response to shifting consumer sentiments relating to the use of recycled papers. In response to the change, customers threatened to de-list the brand and sales fell at an alarming pace.
|
|
|